The Old Mughal Provinces
Three significant states emerged prominently from the old Mughal provinces: Awadh, Bengal, and Hyderabad. These states were established by high-ranking Mughal nobles who had previously served as governors of large provinces. Sa'adat Khan founded Awadh, Murshid Quli Khan established Bengal, and Asaf Jah created Hyderabad. All three leaders held high Mansabdari positions and enjoyed the trust and confidence of the Mughal emperors. Asaf Jah and Murshid Quli Khan both had a zat rank of 7,000, while Sa'adat Khan’s zat was 6,000.
Hyderabad
Nizam-ul-Mulk Asaf Jah founded the state of Hyderabad (1724-1748). Initially appointed as the governor of Awadh, he later took charge of the Deccan. By 1720-22, Asaf Jah had already secured control over its political and financial administration, effectively becoming the ruler of the region. He recruited skilled soldiers and administrators, appointed Mansabdars, and granted jagirs, with the Mughal emperor merely confirming his decisions. Hyderabad was frequently engaged in conflicts with the Marathas to the west and independent Telugu warrior chiefs (Nayakas) of the plateau. Asaf Jah's ambition to control the rich textile-producing areas of the Coromandel coast in the east was thwarted by the British.
Awadh
In 1722, Burhan-ul-Mulk Sa'adat Khan was appointed subadar of Awadh and established the state. Awadh was a prosperous region, controlling the fertile Ganga Plain and the main trade route between north India and Bengal. Sa'adat Khan managed the political, financial, and military affairs of Awadh. He aimed to reduce Mughal influence by decreasing the number of Mughal-appointed officeholders (Jagirdars), reducing the size of Jagirs, and appointing loyal servants to vacant positions. The accounts of Jagirdars were scrutinized, and district revenues were reassessed by officials from the Nawab’s court.
The state relied on local bankers and Mahajans for loans and sold tax collection rights to the highest bidders. These "revenue farmers" (ijaradars) agreed to pay the state a fixed sum of money, with local bankers guaranteeing the payment. In return, revenue farmers were granted considerable freedom in tax assessment and collection.
Bengal
Bengal broke away from Mughal control under Murshid Quli Khan, who was appointed as the naib, or deputy, to the governor of the province. Murshid Quli Khan seized all the power associated with this office, transferring Mughal Jagirdars to Orissa and ordering a major reassessment of Bengal's revenues. Revenue was collected in cash and with strict enforcement from all zamindars.
The formation of a regional state in eighteenth-century Bengal brought significant changes among the zamindars. Under the rule of Alivardi Khan (1740-1756), the close relationship between the state and local bankers became apparent.
Common Features Among Regional States
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Suspicion of Mughal Administrative Systems
: Though many of these larger states were established by former Mughal nobles, they were often highly suspicious of the administrative systems they had inherited from the Mughal Empire.
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Tax Collection Methods
: The method of tax collection in these states differed from traditional Mughal practices. The practice of ijaradari, or revenue farming, spread throughout India in the eighteenth century. This system involved selling the right to collect taxes to the highest bidder.
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Relationships with Bankers and Merchants
: A common feature in all these regional states was their emerging relationship with rich bankers and merchants. This connection was crucial for the financial stability and economic development of these new states.